Target Retirement Funds

You may want to consider investing in just one Target Retirement Fund. A single Target Retirement Fund provides diversification and is designed to keep your assets invested appropriately for someone in your stage of life, up to and including your retirement years.

Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Fund has a fixed investment allocation and is designed for investors who are already retired. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

Consider choosing the fund with the date that’s closest to the year when you expect to retire. If you are already retired, consider choosing Vanguard Target Retirement Income Fund. This fund seeks to provide current income and some capital appreciation to retirees.

Keep in mind that whenever you invest, there’s a chance you could lose the money. Even though Target Retirement Funds simplify the investment process, they still require some monitoring to ensure that your portfolio is in line with your current situation. Each Target Retirement Fund invests in several broadly diversified Vanguard funds. Diversifying means having different types of investments. It doesn’t guarantee you’ll make a profit or that you won’t lose money.

To learn more about Target Retirement Funds, visit vanguard.com/target.

The legal details
Before you invest, get the details. Consider the fund’s objective, risks, charges, and expenses. The fund’s prospectus (or summary prospectus, if available) will tell you these important facts and more. So read it carefully. Call Vanguard at 800-523-1188 to get one. Or you can find one at vanguard.com.